Business
- Manufacturer of stainless steel fastener and aluminium
- Export oriented business (60% of business)
Management
- Executive Chairman: Tsai Ming Ti
Geography area
- Malaysia (Fastener) (Aluminium)
- Thailand (Fastener)
- China
Products
Financial performance
- Revenue increased 7.5%
- Revenue drop 4.28% compared with previous year corresponding quarter was due to lower demand from Aluminium segment and lower selling price for fasterner
- Revenue and net profit increase as compared with previous quarter was due to higher selling volume for aluminium
- Net profit margin:9.6%
- Net cash company
- Cash and bank balance: RM151mn
- NCL: RM 49k
- CL: RM106mn
- Trade receivable: RM78mn increase 6.8%
- Manufacture and sale of stainless steel fasteners, revenue contributed 74%
- Manufacture and sale of aluminium and its related product,revenue contribute 25%
- Malaysia contribute 23%
- Germany contributed 18.3%
- Other countries: 39.39%
- FY 15 Q4 会net Loss 是因为impairment investment loss
mn- FT 16 Q1 net profit会高是因为卖掉亏损业务，RM
Factors that will affect Tongher
- Weaken RM will increase imported cost
- Strengthen USD will benefir Tongher increase demand
- 根据上图，进口成本的比率应该比较重，所以就算以来出口，美元上升也没有完全受惠，有时反而业绩变差
- 预料将在镍价格上涨，以及全球供不应求情况的催化下获利 （year 2009 ）
News
2014
- stainless pricing reacts primarily to nickel as it makes up 60% of cost
- Rising Cost of Nickel = Higher Stainless Steel Fastener Prices
1/11/2015
- 東和資源 6063萬售Fuco股權
2017
- Aluminiu outlook
- higher coal prices supported alumina prices.Lower Chinese aluminum production also supported aluminum prices
- demand and supply
Share price
- Current share price: RM2.56 (new high)
- My target price is RM2.6 in a very bad case for next quarter EPS4
- Market already react so fast
- Given PE:10
- In worst case for next quarter,EPS 4, targer price is RM2.6. Otherwise, continue holding.
- However, since Tongher already sold one of subsidiary that make loss I believe, even though higher profit is not guarantee, at least loss is avoided
- Also, a higher price for stainless steel fasterner need to depend on Nickle, can pay attention on Nickle price
- Besides, Aluminium price depend on price of Coal, can observe too. Aluminium stock level so low, so it may higher the Aluminium price,benefit to Tongher
Risk
- sometime Tongher's net profit will be affected due to its subsidiary's loss (but after look back the report, Tongher probably already sold the company at 1/11/2015)
- Low Aluminium price and Nickle price. Need to observe stock level and China capacity
- Strengthen USD will increase Tongher's cost (weaken USD accompany with higher Aluminium or Nickle price would benefit Tongher)
Reference:
http://www.kitcometals.com/charts/nickel_historical_large.html#lmestocks_5years
http://www.shallcrossbolt.com/news/rising-cost-of-nickel-higher-stainless-steel-fastener-prices-1400086685.html
- http://marketrealist.com/2017/01/could-the-federal-reserves-actions-impact-alcoa-in-2017/
留言列表
